Investors
Frequently Asked Questions
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F. A. Q.
Overview
At this time only Accredited Investors are permited to invest.
From: Anxious Film Investor
We focused on questions which seemed appropriate, The answers are related to are own offering.
1. The most important thing is to read the entire script before you invest.
2. The execution of the script determines production quality.
You should have confidence in the producers ability to deliver the team necessary to do the job.
3. Skin in the game? Who stands to win or loose the most?
Investors and producer both have 50% shares in profit or loss.
4. Is this investimate fool proof?
It is true we cannot guarantee any successful outcome. There is always risk.
5. The PPM should outline what “investor shares” are.
6. What if they run out of money and allow other investors after they are underway.
7. Will the investors get to see a real budget and how their investment is spent?
8. What is the return on investiment in the Film Revenue Package? Answer Here
A private placement of securities involves selling securities without registering the securities with the SEC.
Regulation D is one registration exemption offered to issuers by The Securities Act of 1933 as amended. The Electronic Code of Federal Regulations (e-CFR) outlines the requirements for using the Regulation D exemption and the information that must be provided to investors.
What is a Private Placement Memorandum?
A Private Placement Memorandum (“PPM”) is a legal document, given to prospective investors when the issuer is seeking capital and issuing a security, that describes and explains exactly why and how the offering complies with the SEC’s Regulation D Offering Exemption. Unlike a prospectus, a PPM is used in “private offering of securities” when the securities are not registered under applicable federal or state law.
The PPM describes the company selling the securities, the terms of the offering, and the risks of the investment, amongst other things. The disclosures included in the PPM vary depending on which exemption from registration is being used, the target investors, the complexity of the terms of the offering, the issuer’s finances and other important facts.
What is a Subscription Agreement?
The Subscription Agreement is a legal purchase document which is part of the PPM.
The Subscription Agreement is a promise by the issuer to sell a specific number and type of security. It is also a promise by an investor, sometimes referred to as the subscriber, to purchase a specific number of securities at a specified price from the issuer.
In addition to functioning as a type of purchase agreement, the Subscription Agreement can also help the issuer qualify potential subscribers/investors in determining whether or not the potential investor meets the definition of and qualifies as an accredited investor. This qualification is especially important if the issuer plans to use Rule 506(b) or Rule 506(c) of Regulation D.
We plan to use Rule 506(c) of Regulation D.
External Reference
Rule 506 of Regulation D
External FED. Reference
SEC about exempt offerings
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